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Thursday, October 7, 2010

Behind every Great Statesman, stands a Great Woman - Singapore Mdm Kwa Geok Choo

Lee Kuan Yew is supernumerary minister as Mini...Image via Wikipedia

The last farewell to Madam Kwa Geok Choo — Lee Kuan Yew

October 06, 2010

Oct 6 — Ancient peoples developed and ritualised mourning practices to express the shared grief of family and friends, and together show not fear or distaste for death, but respect for the dead one; and to give comfort to the living who will miss the deceased.
I recall the ritual mourning when my maternal grandmother died some 75 years ago. For five nights the family would gather to sing her praises and wail and mourn at her departure, led by a practiced professional mourner.
Such rituals are no longer observed. My family’s sorrow is to be expressed in personal tributes to the matriarch of our family.
In October 2003 when she had her first stroke, we had a strong intimation of our mortality.
My wife and I have been together since 1947 for more than three quarters of our lives. My grief at her passing cannot be expressed in words. But today, when recounting our lives together, I would like to celebrate her life.
In our quiet moments, we would revisit our lives and times together. We had been most fortunate. At critical turning points in our lives, fortune favoured us.
As a young man with an interrupted education at Raffles College, and no steady job or profession, her parents did not look upon me as a desirable son-in-law. But she had faith in me.
We had committed ourselves to each other. I decided to leave for England in September 1946 to read law, leaving her to return to Raffles College to try to win one of the two Queen’s Scholarships awarded yearly. We knew that only one Singaporean would be awarded. I had the resources, and sailed for England, and hoped that she would join me after winning the Queen’s Scholarship.
If she did not win it, she would have to wait for me for three years.
In June the next year, 1947, she did win it. But the British colonial office could not get her a place in Cambridge.
Through Chief Clerk of Fitzwilliam, I discovered that my Censor at Fitzwilliam, W S Thatcher, was a good friend of the Mistress of Girton, Miss Butler.
He gave me a letter of introduction to the Mistress. She received me and I assured her that Choo would most likely take a “First”, because she was the better student when we both were at Raffles College.
I had come up late by one
term to Cambridge, yet passed my first year qualifying examination with a class 1. She studied Choo’s academic record and decided to admit her in October that same year, 1947.
We have kept each other company ever since. We married privately in December 1947 at Stratford-upon-Avon. At Cambridge, we both put in our best efforts. She took a first in two years in Law Tripos II. I took a double first, and a starred first for the finals, but in three years.
We did not disappoint our tutors. Our Cambridge Firsts gave us a good start in life. Returning to Singapore, we both were taken on as legal assistants in Laycock & Ong, a
thriving law firm in Malacca Street. Then we married officially a second time that September 1950 to please our parents and friends. She practised conveyancing and draftsmanship, I did litigation.
In February 1952, our first son Hsien Loong was born. She took maternity leave for a year.
That February, I was asked by John Laycock, the Senior Partner, to take up the case of the Postal and Telecommunications Uniformed Staff Union, the postmen’s union.
They were negotiating with the government for better terms and conditions of service. Negotiations were deadlocked and they decided to go on strike. It was a battle for public support. I was able to put across the reasonableness of their case through the press and radio. After a fortnight, they won concessions from the government. Choo, who was at home on maternity leave, pencilled through my draft statements, making them simple and clear.
Over the years, she influenced my writing style. Now I write in short sentences, in the active voice. We gradually influenced each other’s ways and habits as we adjusted and accommodated each other.
We knew that we could not stay starry-eyed lovers all our lives; that life was an on-going challenge with new problems to resolve and manage.
We had two more children, Wei Ling in 1955 and Hsien Yang in 1957. She brought them up to be well-behaved, polite, considerate and never to throw their weight as the prime minister’s children.
As a lawyer, she earned enough, to free me from worries about the future of our children.
She saw the price I paid for not having mastered Mandarin when I was young. We decided to send all three children to Chinese kindergarten and schools.
She made sure they learned English and Malay well at home. Her nurturing has equipped them for life in a multi-lingual region.
We never argued over the upbringing of our children, nor over financial matters. Our earnings and assets were jointly held. We were each other’s confidant.
She had simple pleasures. We would walk around the Istana gardens in the evening, and I hit golf balls to relax.
Later, when we had grandchildren, she would take them to feed the fish and the swans in the Istana ponds. Then we would swim. She was interested in her surroundings, for instance, that many bird varieties were pushed out by mynahs and crows eating
up the insects and vegetation.
She discovered the curator of the gardens had cleared wild grasses and swing fogged for mosquitoes, killing off insects they fed on. She stopped this and the bird varieties returned. She surrounded the swimming pool with free flowering scented flowers and derived great pleasure smelling them as she swam.
She knew each flower by its popular and botanical names. She had an enormous capacity for words.
She had majored in English literature at Raffles College and was a voracious reader, from Jane Austen to JRR Tolkien, from Thucydides’ The Peloponnesian Wars to Virgil’s Aeneid, to The Oxford Companion to Food, and Seafood of Southeast Asia, to Roadside Trees of Malaya, and Birds of Singapore.
She helped me draft the Constitution of the PAP. For the inaugural meeting at Victoria Memorial Hall on 4 November 1954, she gathered the wives of the founder members to sew rosettes for those who were going on stage.
In my first election for Tanjong Pagar, our home in Oxley Road, became the HQ to assign cars provided by my supporters to ferry voters to the polling booth.
She warned me that I could not trust my new found associates, the leftwing trade unionists led by Lim Chin Siong. She was furious that he never sent their high school student helpers to canvass for me in Tanjong Pagar, yet demanded the use of cars provided by my supporters to ferry my Tanjong Pagar voters.
She had an uncanny ability to read the character of a person. She would sometimes warn me to be careful of certain persons; often, she turned out to be right.
When we were about to join Malaysia, she told me that we would not succeed because the UMNO Malay leaders had such different lifestyles and because their politics were communally-based, on race and religion.
I replied that we had to make it work as there was no better choice. But she was right.
We were asked to leave Malaysia before two years.
When separation was imminent, Eddie Barker, as Law Minister, drew up the draft legislation for the separation. But he did not include an undertaking by the Federation Government to guarantee the observance of the two water agreements between the PUB and the Johor state government. I asked Choo to include this. She drafted the undertaking as part of the constitutional amendment of the Federation of Malaysia Constitution itself.
She was precise and meticulous in her choice of words. The amendment statute was annexed to the Separation Agreement, which we then registered with the United Nations.
The then Commonwealth Secretary Arthur Bottomley said that if other federations were to separate, he hoped they would do it as professionally as Singapore and Malaysia.
It was a compliment to Eddie’s and Choo’s professional skills. Each time Malaysian Malay leaders threatened to cut off our water supply, I was reassured that this clear and solemn international undertaking by the Malaysian government in its Constitution will get us a ruling by the UNSC (United Nations Security Council).
After her first stroke, she lost her left field of vision. This slowed down her reading. She learned to cope, reading with the help of a ruler. She swam every evening and kept fit. She continued to travel with me, and stayed active despite the stroke. She stayed in touch with her family and old friends.
She listened to her collection of CDs, mostly classical, plus some golden oldies. She jocularly divided her life into “before stroke” and “after stroke”, like BC and AD.
She was friendly and considerate to all associated with her. She would banter with her WSOs (woman security officers) and correct their English grammar and pronunciation in a friendly and cheerful way. Her former WSOs visited her when she was at NNI. I thank them all.
Her second stroke on 12 May 2008 was more disabling. I encouraged and cheered her on, helped by a magnificent team of doctors, surgeons, therapists and nurses.
Her nurses, WSOs and maids all grew fond of her because she was warm and considerate. When she coughed, she would take her small pillow to cover her mouth because she worried for them and did not want to infect them.
Her mind remained clear but her voice became weaker. When I kissed her on her cheek, she told me not to come too close to her in case I caught her pneumonia.
I assured her that the doctors did not think that was likely because I was active.
When given some peaches in hospital, she asked the maid to take one home for my lunch. I was at the centre of her life.
On 24 June 2008, a CT scan revealed another bleed again on the right side of her brain. There was not much more that medicine or surgery could do except to keep her comfortable.
I brought her home on 3 July 2008. The doctors expected her to last a few weeks. She lived till 2nd October, 2 years and 3 months.
She remained lucid. They gave time for me and my children to come to terms with the inevitable. In the final few months, her faculties declined. She could not speak but her cognition remained.
She looked forward to have me talk to her every evening.
Her last wish she shared with me was to enjoin our children to have our ashes placed together, as we were in life.
The last two years of her life were the most difficult. She was bedridden after small successive strokes; she could not speak but she was still cognisant.
Every night she would wait for me to sit by her to tell her of my day’s activities and to read her favourite poems. Then she would sleep.
I have precious memories of our 63 years together. Without her, I would be a different man, with a different life. She devoted herself to me and our children.
She was always there when I needed her. She has lived a life full of warmth and meaning.
I should find solace at her 89 years of her life well lived. But at this moment of the final parting, my heart is heavy with sorrow and grief.
* This eulogy by Singapore’s Minister Mentor Lee Kuan Yew was delivered at the funeral service of his wife, Madam Kwa Geok Choo at a private ceremony at Mandai Cremetorium today.
* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.
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Tuesday, October 5, 2010

Reasons to focus on Real Estate Investment

More Reasons to Shift to Real Estate

Milan Doshi compares portfolio investments with real estate returns and gives convincing reasons why you should shift your investment to real estate

In my previous article on “Boring and Slow versus Exciting and Uncertain Returns” (if you have not read it, click http://www.iproperty.com.my/news/2410/Boring-and-Slow-versus-Exciting-and-Uncertain-Returns), my conclusion was that Boring and Slow Returns (in real estate) is anytime better than Exciting and Uncertain Returns (in other portfolio investments) … over the long term that is! See Chart 1 below taken from the previous article.

Chart 1


For portfolio investments, you need compounded returns of between 12-14% every year for the next 20 years in order to match the returns from the Net Worth Divergence effect in property investments. What is even more surprising is that over a 20- year time frame, real estate outperforms in the first 18 years and only loses out in the last 2 years! 18 out of 20 years means that 90% of the time, property comes out ahead.

Property: Less Work

When I shared this with some friends who are active stock and futures traders, they too were quite surprised. While their short term trading goal was to make 10-20% per trade or per month, after adding up their profitable and losing months, the returns on their capital averages around 15-20% per annum in a normal year. For exceptional years, the difference could be more than +/- 30%! These are traders who spend a minimum of 6 hours per day Mondays to Fridays trading and/or watching the markets.

On the other hand, a real estate investor only needs to invest approximately 50 to 100 hours upfront to find a good property, get it financed and tenanted. Thereafter, the property continues working for him for life. Even after the buyer passes away many years later, the property still continues working for his beneficiaries. Only a little time and effort is needed every few years whenever there is a change of tenants. In this regard, real estate definitely makes more sense compared to trading as a lot less time and effort is required to achieve more or less the same sort of returns in normal years. The other advantage is that there are no wild swings in the returns even during exceptional years.

Being inquisitive, I didn’t stop here. I asked a few of my good friends in the financial industry to give me names of investments which had given compounded returns of around 12-14% pa in the last 20 years.

According to my friend in Public Mutual, their best performing fund is the Public Savings Fund. See Chart 2 below taken from their website at:
http://www.publicmutual.com.my/application/fund/performance.aspx

Chart 2

Another fund of theirs which has consistently been the No. 1 fund in its category since its launch is the Public Smallcap Fund. See Chart 3 below

Chart 3

I tried computing the annualized compounded return of both these funds but it was a futile effort as both these charts only show the Gross Returns (i.e. dividends have been added in) whereas all upfront costs and annual fees have been excluded.

For the stock market, the obvious answer from most Remisiers was Public Bank. See Chart 4 below which shows the price of Public Bank from 1987 to 2009. The drawback of this chart is that it only shows the stock price performance. The quantity of shares that have increased over the years thanks to the bonus issues and dividends paid out every year are excluded.

Chart 4 of Public Bank Bhd

Volatile Shares

Hopefully some academician reading this article may take the initiative to do an “apple to apple” comparison as well as compute the compounded returns over the long term. The best I can do is to make a “pictorial” comparison using the 4 charts. The following conclusions emerge:

1. Up to 1992, portfolio investments were growing steadily with little volatility, very much like real estate. Buy and hold strategies in either mutual funds or blue chip stocks worked. It made sense to diversify and split your investment capital into both real estate and portfolio investments.

2. After the stock market Super Bull Run in 1993, the entire dynamics of portfolio investments changed. A lot of people saw the stock market as their ticket to make quick money. The money was not in the slower blue chips or buy and hold strategies, but to trade in speculative second liners based on rumours. While quick money could be made, there were also a lot of occasions that money was lost even quicker. The stock market became a casino for many people. Many people even lost their shirts on their back and more!

3. In the last 10 years thanks to the internet and globalization, the volatility of portfolio investments has increased tremendously. We have experienced and will continue to see a lot of steep “mountains and valleys” in terms of price volatility. If 100% of your capital is invested into paper assets, your Net Worth will also experience many steep “mountains and valleys”. Hence it’s advisable to shift more of your capital into real estate.

My suggestion is to allocate at least 70% or more of your investment capital into real estate to shield your Net Worth from the price volatility of portfolio investments. As long as you buy completed properties in good locations that are easy to rent out with rental enough to pay the monthly installments, the risks of real estate investment are pretty low.

4. The higher price volatility of portfolio investments in recent years also indirectly affects the property market. In globalized cities such as Hong Kong and Singapore, their real estate prices have also have experienced a lot of steep “mountains and valleys”. This is mainly due to their limited land supply and high demand from foreigners due to their foreign investor friendly government policies. Hence the timing of your entry and exit points in the real estate in these two cities is extremely important.

In this regard, we are much luckier in Malaysia and the Klang Valley in particular. Unlike Hong Kong and Singapore, we still have ample land supply and lower demand from foreign investors. Hence our real estate prices have only experienced gentle “hills and valleys”. This makes our real estate market a lot less riskier to invest in.

I hope this article gives you even more reasons to shift more of your investment capital into real estate in light of the increased volatility in portfolio investments in recent years.